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Groww Stock Climbs on Positive Broker Coverage
Shares of Billionbrains Garage Ventures, the parent company of digital investment platform Groww, experienced a notable rise on Friday, extending gains into a second consecutive session. The stock surged 12.85 percent to ₹162.63, reaching its highest level since November 28.
As of midday trading, shares were up 10.19 percent at ₹158.98, significantly outperforming the 0.47 percent rise in the Nifty 50 index. Trading volumes on BSE reached 6.02 million shares, surpassing the two-week average of 3.26 million shares. By 12:09 p.m., the market capitalization of Billionbrains Garage Ventures stood at approximately ₹98,005.85 crore.
Positive Broker Coverage Boosts Sentiment
Market analysts pointed to global brokerage coverage as a key factor behind the stock’s strong performance. Jefferies initiated coverage on Groww with a ‘Buy’ rating and a target price of ₹180, indicating a potential upside of 25 percent according to media reports.
Jefferies highlighted the growth potential of Groww’s parent company, noting:
“Impressed by its massive growth in a short period of time, the brokerage compared Groww with Robinhood, an American trading application which makes trading easy and accessible.”
The brokerage cited multiple growth drivers that could propel earnings. Groww is expected to achieve an earnings per share (EPS) growth of 35 percent from FY2026 to FY2028, supported by expansions across its broking business, new initiatives like margin trading and wealth management, and margin improvements.
Earnings and Margin Expansion
Compared to peers such as Robinhood and Angel One, Groww has demonstrated significant margin expansion. Jefferies reported:
“Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose to 59 percent in FY2025 from 23 percent in 2023.”
Although the current fiscal year may see a moderation in margin expansion due to lower broking revenue, the global brokerage values the stock at a premium to peers like Angel One, citing higher growth, better margins, and lower exposure to the futures and options (F&O) segment.
Growth Story Since Launch
Groww, launched in 2018, has experienced rapid growth by developing a user-friendly digital interface and focusing on attracting younger investors. Today, Groww operates as a full-stack investment platform, offering services across stocks, mutual funds, derivatives, and loans.
The platform serves 98 percent of Indian pin codes, manages 37 million demat accounts, and oversees approximately ₹2.6 lakh crore in assets under management (AUM) through subsidiaries in broking, lending, and asset management.
IPO Performance and Market Reception
Billionbrains Garage Ventures went public on November 12, debuting at ₹114 per share, representing a 14 percent premium over its issue price of ₹100. The initial public offering (IPO) received exceptional demand, with subscriptions reaching 17.6 times on the final day.
The strong IPO demand reflects investor interest in Groww’s technology-driven approach and its potential to capture the growing digital investment market in India.
Trading Volumes and Market Dynamics
On Friday, Groww’s shares traded 6.02 million shares, indicating heightened market activity compared to the two-week average of 3.26 million shares. Analysts note that this surge in trading volume coincided with the positive broker coverage, further amplifying the stock’s momentum.
While the stock’s upward movement is noticeable, it is part of a broader market trend reflecting investor attention on digital investment platforms and their long-term growth prospects.
